Marketing Midterm Exam - Germann

Front 1

What is Marketing?

Back 1

is the activity for creating communicating, delivering, and exchanging offerings that benefit is customers, the organization, its stakeholders, and society at large

Front 2

What are the 5 Cs?

Back 2

Customer
Company
Context
Collaborators
Competitors

Front 3

What does STP stand for?

Back 3

Segmentation - customers are not all the same; find out how they vary in their preferences, needs and resources
Targeting - Pursue the group of customers that make the most sense for the company
Positioning - communicate our company's products benefits clearly to the intended target customers

Front 4

What are the 4 Ps?

Back 4

Product
Price
Place
Promotion

Front 5

How would you go about analyzing the context in which your company operates?

Back 5

1) Determine a trend that may have an impact on the firm
2) Created structure for the forces that affect (out of control fishing expedition)

Front 6

4 Environmental Forces

Back 6

SETR 1) Social 2) Economic 3) Technological 4) Regulatory

Front 7

Please name 3 social forces.

Back 7

1) Cultural Trends
2) Demographic Concerns
3) Attitude Shifts

Front 8

Please give two examples of how you can identify unmet customer needs.

Back 8

1) Lead Users
2) closely monitor customer satisfaction and complaints
3) Discuss product experience (problems, improvements, ideal experience

Front 9

What are the 5 stages of the purchase decision process?

Back 9

1) Problem Recognition
2) Information Collection
3) Alternative Evaluation
4) Make a Purchase Decision
5) Post-purchase behavior

Front 10

Benefits firms can enjoy w/ satisfied buyers. (3 benefits)

Back 10

1) Search less additional information when making another purchase
2) More resistant to competitors marketing efforts
3) Receptive to line extensions and other products by same firm
4) Tend to engage in word-of-mouth

Front 11

Difference between a low and a high involvement product? Please give 
examples.

Back 11

Low - Frequently consumed, customers do not spend much time on purchase (ie convenience product - toothpaste, toiletpaper)
High - Occasional purchases, more expensive, consumers put effort into the purchase (ie Car, plasma TV)

Front 12

B2B, B2C

Back 12

Business to Business, Business to Consumer

Front 13

Marketing stimulus breaking through a consumer’s 
“sensory limits”? How...

Back 13

If product marketing is...
1) Personally relevant
2) Pleasant or funny
3) Surprising or unexpected

Front 14

What is Tobin’s Q
What does a Tobin’s Q of >1 imply? of >1 imply?

Back 14

Ratio between the market value and replacement value of the same physical asset
Tobin Q = )Market Value) / (Replacement Value)
Q > 1 means that the market value is higher than the replacement value {Asset can be overvalued, brand, quality, reliability plays a factor}
Q < 1 means the market value is less than the replacement value {Asset may be undervalued, low brand, low quality, unreliability plays a factor}

Front 15

Fred Reichheld' Ultimate Question?

Back 15

How likely are you to recommend our company to a friend or colleague?

{word of mouth, viral product service}

Front 16

Net Promoter Score (NPS)?

Back 16

Net Promoter Score is a management tool used to gauge the loyalty of a firm's customer relationships. An alternative to traditional customer satisfaction research. Customers are ranked on a scale of 0-10 (0 not likely to recommend product, 10 extremely likely) 0-6 are detractors, 9-10 are promoters

NPS = (% of Promoters) - (% of Detractors)

Front 17

SWOT Analysis? How can it be used along with a situational analysis?

Back 17

Situational Analysis (5Cs) map on the SWOT Table...
Strengths
Weaknesses
Opportunities
Threats

Front 18

Segmentation

Back 18

is the subdividing of a market into distinct subsets, where any subset may be selected as a marketing target to be reach with a distinct marketing mix
(each subsegment should be alike within and different between)

Front 19

Why would you want to segment the marketplace?

Back 19

1) Consumers have different needs and desires
2) Consumers respond differently to marketing offerings

Front 20

What variables are frequently used to define customer segments?

Back 20

1) Geographic
2) Demographic
3) Psychographic
4) Behavioral

(GDPB) (Gold, Doves, Perform Better)

Front 21

What aspects should you consider when deciding on a customer (i.e., target) segment?

Back 21

1) segment Size
2) structural Attractiveness
3) available Resources (to target them)?
4) target Multiple segments?
5) company Fit (Soul of company)

(SARMF) Snake Attacks Require Muscle Fitness

Front 22

Firm Value Propositions (5 of 9 of them)

Back 22

1) Quality
2) Value
3) Design
4) Corporate Social Programs
5) Niche Specialists
6) Customer Intimacy
7) System Solutions
8) Superior Attributes
9) Emotional Self Expressive Benefits

Front 23

Value proposition for selling a systems solution.

Back 23

One stop shop {you get multiple product/service value propositions from one company/brand}

Front 24

Niche specialist companies

Back 24

Smart Cars, hernia hospital, fathead posters, radioshack

Front 25

Purpose of the 4Ps?

Back 25

Execute intended position [Implementation of the marketing plan/program]

Front 26

Regarding products, what are credence properties?

Back 26

items that are difficult to evaluate (value, quality) (ie. Legal work, medical services, auto repair, root canal)

Front 27

What is a brand?

Back 27

it is a promise in terms of what to expect from a product.

Name, term, sign, symbol, design, or combination of these that identifies the goods or services of one seller or group of sellers and differentiates them from those of competitors

Front 28

What is brand equity?

Back 28

is the incremental utility or value added to a product by its brand name

Front 29

3 Pillars of Brand Equity

Back 29

1) Brand Awareness
2) Brand Loyalty
3) Brand Associations

[ALA - Almost Laid Again]

Front 30

Brand awareness creation (in hypercompetitive space)

Back 30

Repeated exposure with strong brand identity
Extensive distribution
• Publicity and brand-related stories/articles
• Publicity stunts
• Product placement in movies, games, etc.
• Direct marketing
• A strong web (Internet) presence
• Customer referrals
• Word of mouth marketing
• Frequency programs
• Insignia merchandise
• Brand licensing
• Online and other viral marketing techniques
• A strong presence at trade shows and in trade magazines
• Thought leadership in the industry – white papers, speeches, roundtable discussions, user conferences, best practice benchmarking, etc.
• Branding on employee uniforms, sides of vehicles, in front of buildings, etc.
• Brand signature on all email messages
• Programs promoting product trial
• Brand-related contests

Front 31

Brand loyalty is based on...

Back 31

1) Switching Costs
2) Simple Habits
3) Preference

Front 32

Line extension?

Back 32

is the increase of depth of a product within a line. (product differentiation)

Front 33

Product Category Extension?

Back 33

is the increase in breadth of a new product line (variety of products)

Front 34

What is ingredient branding?

Back 34

form of co-branding where one company adds value to a host product. (Joint venture partner with another company) - Eddie Bauer Ford Explorer

Front 35

How do companies benefit from brands?

Back 35

1) Willingness to pay premium price
2) Increase probability of brand choice
3) Increase marketing communication effectiveness
4) Increase brand name extendability and brand licensing opportunities
5) Decrease vulnerability to competitive marketing actions
6) Decrease elastic responses to price increases
7) Lever for attracting best employees and keeping current employees

Front 36

How do consumers benefit from brands?

Back 36

1) Identify company ownership
2) Allow for predictable quality and decrease risk.
3) Make consumer decisions easier
4) Status Symbol

Front 37

Ways brands changed the role of marketing

Back 37

Shifted the role of marketing from being tactical, reactive, short term TO BEING strategic and visionsary

Front 38

Law of Demand.

Back 38

Quantity demanded decreases as price increases

(Inverse relationship between price and demand)

Front 39

Price elasticity of Demand Definition and Formula

Back 39

(% Δ qty demanded) / (% Δ price)

>1 elastic
<1 inelastic

Front 40

Selective Distribution Strategy and company example

Back 40

Where will the product be sold...multiple, but limited outlets per region (Sony...Dell)
some selling support effort needed

Front 41

Exclusive Distribution Strategy and company example

Back 41

single outlet per region - can only buy at that store - apple, rolex

substantial selling support required

Front 42

How a marketing channel partner can provide benefits to the 
producer. (5 ways)

Back 42

1) Market Research
2) Risk Taking
3) Quality Assurance
4) Demand Generation
5) Lot Sizing Packaging
6) Logistics

Front 43

Why are consumers more likely to buy items at the end of the isle?

Back 43

- attracts more attention

Front 44

“Showrooming” phenomenon?

Back 44

Shoppers check out products in a store for showroom, but then purchase elsewhere for cheaper prices (Best-Buy Effect)

Front 45

Customer Lifetime Value (CLV) Analysis

Back 45

3 Components
1) Numbers about money
- estimates of acquisition costs
- estimates of retention costs
- average contributions
2) Numbers about time
- likely retention rate year to year
- sense of average lifespan duration for product/brand
3) Financing Finesse

Front 46

Customer Lifetime Value (CLV) Calculated

Back 46

1) Acquisition cost
2) Retention Cost
3) % Retained
4) % Cumulative Retained
5) Average Customer Contribution
6) Net Contribution (Item 5 - Item 1or Item 2)
7) Item 6 x Item 4 ...Net Contribution x Cumulative Retention Rate = Expected Average Contribution
8) (1.07)^(t-1)
9) Sum of all of the discount rates